Medpace Holdings Inc (MEDP)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	1,656,830	1,486,720	1,406,940	1,395,720	1,352,500	1,328,420	1,315,450	1,344,350	1,659,940	1,577,140	1,469,710	1,451,360	1,390,680	1,296,140	1,222,130	1,137,630	1,143,070	1,072,330	1,016,860	1,006,520
Total stockholders’ equity	US$ in thousands	558,950	470,912	391,060	347,262	386,387	349,885	283,252	605,016	952,928	898,085	851,882	858,927	805,779	791,629	738,069	717,799	726,283	692,007	658,055	621,897
Financial leverage ratio		2.96	3.16	3.60	4.02	3.50	3.80	4.64	2.22	1.74	1.76	1.73	1.69	1.73	1.64	1.66	1.58	1.57	1.55	1.55	1.62

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,656,830K ÷ $558,950K
= 2.96

The financial leverage ratio of Medpace Holdings Inc has shown fluctuation over the past eight quarters, ranging from a low of 2.22 in Q1 2022 to a high of 4.02 in Q1 2023. The trend indicates that the company's leverage has been increasing over time, reaching a peak in Q2 and Q1 2023. A high leverage ratio suggests that the company relies more on debt financing rather than equity, which can increase financial risk and reduce financial flexibility. It is important for stakeholders to monitor this ratio closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively. The company may need to consider strategies to optimize its capital structure and reduce its reliance on debt to mitigate potential risks associated with high leverage.